The overall quantum computing market is expected to grow from USD 93
million by 2019 to USD 283 million by 2024 at a CAGR of 24.9%. The QCaaS
market is expected to grow from USD 4 million by 2019 to USD 13 million
by 2024 at a CAGR of 26.8%.

The market growth is attributed to the increasing demand for quantum
computing in industries such as space and defense, automotive,
chemicals, energy and power, healthcare, and banking and finance. The
material simulation application is expected to register high growth in
the overall quantum computing market during the forecast period.

Automotive companies such as Volkswagen AG (Germany) are using material
simulation applications to simulate the chemical structure of batteries
on quantum computers. This is important for the development of
high-performance electric vehicle batteries. Moreover, various end-user
industries are using quantum computers as well as adopting QCaaS to
simulate material structures.

Automotive industry to lead quantum computing market during
forecast period

The automotive industry uses optimization, machine learning, and
simulation applications for problem-solving. Major automotive companies
are adopting this new technology to make their offerings more efficient.
For example, Daimler AG (Germany) joined other automotive companies
experimenting with the potential applications of quantum computing.

Also, Ford Motor Company (US) signed an agreement with NASA to access
their D-Wave quantum computer, improve the efficiency of fleet vehicles,
optimize driving routes, and improve the structure of batteries for
electric vehicles. Volkswagen AG (Germany) has developed a
quantum-computing-based traffic management system that could be offered
as a commercial service. The company is also interested in developing
more advanced batteries.

Material simulation is used in various industries such as healthcare,
automotive, entertainment, banking and finance, and defense. Companies
such as D-Wave Systems Inc. (Canada), 1QB Information Technologies Inc.
(Canada), and QxBranch, LLC (US) are working toward providing a platform
to enhance the availability, usability, and accessibility of quantum
computers in the material simulation applications in the near future.

QxBranch LLC (US) has launched quantum computing simulator for the
Commonwealth Bank of Australia. Moreover, Atos SE (France) has launched
the highest-performing quantum simulator named Atos Quantum Learning
Machine’ (Atos QLM); such developments are expected to drive the growth
of the quantum computing market for the simulation application.

APAC to lead quantum computing market for consulting
solutions during forecast period

The quantum computing market, by geography, has been broadly segmented
into North America, Europe, and APAC. In terms of value, North America
accounted for the largest share of 45% of the quantum computing market
for consulting solutions in 2018. This growth is attributed to key
players based in this region as well as the increase in the adoption of
quantum computing applications in distinct industries such as defense,
chemicals, and banking and finance.

The quantum computing market for consulting solutions in APAC is
expected to grow at the highest CAGR during 2019-2024. This growth can
be attributed to the escalating demand for quantum computing
applications from emerging economies such as China and South Korea,
especially in industries such as defense, healthcare, and energy and
power, in the coming years.